First time home buyers have the opportunity this year to purchase a single family home using several national and state incentives. These incentives include the $8000 tax credit, MCC credits, gift contributions and low FHA downpayment requirements. One such item I'd like to talk about today is the TDHCA 90-Day Down-Payment Assitance Program.
The Texas Department of Housing and Community Affairs (TDHCA) has recently released a Down Payment Assitance Program called TDHCA 90-Day DPA. The program allows a first time homebuyer to monetize the $8000 tax credit and apply it to the down payment and closing costs. What is important to note is that the funds are First Come, First Serve. The funds available are $5 Million earmarked to this program. The Texas First Time Homebuyer Program website shows the three main Texas Programs - Down Payment Assistance Program, The Texas Mortgage Credit Program, and the recent TDHCA 90-Day Down-Payment Assitance Program.
The Down Payment Assistance Programs were created to monetize the Federal First Time Homebuyer Tax Credit enacted within the American Recovery and Reinvestment Act of 2009. The $8000 credit of course is to be used towards down payment and closing costs. The Texas Mortgage Credit Program reduces a family's federal income tax obligation. The best thing about the tax credit is that it is valid for the life of the loan as long as the borrower occupies the property as their primary residence.
Important Points
- Funds Available: $5 Million, First Come, First Serve
- Available only for FHA 15 and 30 year fixed rate first lien mortgage loans
- Can extend your closing to 45 days instead of a 30 day close
Federal First Time Homebuyer Requirements
- First time homebuyers purchasing a home - new or resale that will be used as a principle residence. Includes single family detached homes, attached homes like townhomes and condominiums.
- First time homebuyer is a buyer who has not owned a principal residence during the 3 year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
- Home purchase must occur on or after 01/01/09 and before 12/01/09. The purchase date is the date when closing occurs and the title to the property transfers to the homeowner.
- Income limit for single taxpayer is $75,000.
- Income limit for married taxpayers filing a joint return is $150,000.
Eligible Properties
- All single family, condos and townhomes
- Manufactured housing and cooperatives are not allowed
Income Limits
- Single taxpayer is $75,000.
- Married taxpayers is $150,000.
Credit Requirements
- Minimum credit score of 620 is required for FHA
Useful Links
The Texas First Time Homebuyer Program
Program Guidelines and Additional Information (PDF)
A special thanks to:
Darrell Clifton
Certifed Mortgage Planner
Prime Lending
550 Post Oak Blvd Ste. 350
Houston, TX 77027
832-275-9161 Cell
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Keller Williams Houston Metropolitan
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